HCM 316 COMP EXAM QUESTIONS & ANSWERS 2024/2025
ACCOUNTING - ANSWERSSystem for providing financial information
Financial Accounting - ANSWERSFormalizaed system of recording the organizations financial history
Managerial Accounting - ANSWERSProvides financial info to help future oriented ...
ACCOUNTING - ANSWERSSystem for providing financial information
Financial Accounting - ANSWERSFormalizaed system of recording the organizations financial history
Managerial Accounting - ANSWERSProvides financial info to help future oriented decision making
Finance - ANSWERSManagement of the organization acquisition and disposition of resources (especially
cash)
Goals of Financial Management - ANSWERSprofitability, viability
Profitability trade off - ANSWERSThe greater the risk the greater the return
Viability trade off - ANSWERSLiquidity vs solvency : what viability is measured in
Liquidity - ANSWERSMeasure of resources that can be used to QUICKLY meet any near term obligations
(like cash)
Solvency - ANSWERSMeasure of the organizations ability to meet its LONG TERM obligations
What is included in a balance sheet - ANSWERSAssets, liabilities, and net assets
What does an operating/ income statement tell you? - ANSWERSComparison of the organizations
revenues and expenses
, What does the statement of cash flows tell you? - ANSWERSFormal report of the organizations inflow &
outflow of cash during the specific accounting period
What does a debt do - ANSWERSDecrease in liabilities and revenues & increases assets and expenses
What does a credit do - ANSWERSIncreases assets and expenses & decreases liabilities and revenues
What are the 2 types of ASSETS? - ANSWERSTangible (also known as fixed assets) and intangible
How do you calculate net assets? - ANSWERSASSETS - LIABILITIES = NET ASSETS
What's the formula for unrestricted net assets? - ANSWERSOriginal unrestricted net asset from
instructions + current net income - SUM of expenses
What's the difference between straight line depreciation and double declining balance depreciation? -
ANSWERSStraight line: used in the financial statements to show stockholders since there's lower
depreciation and higher income & depreciation equally divides the asset depreciation throughout its
useful life
DDB: used for reports to the IRS since its lower income meaning you pay less taxes & speeds up the
depreciation on an asset in the early years and educes the amount taken up in the later years
How do you calculate total assets? - ANSWERSCurrent assets + fixed assets
How do you calculate net income - ANSWERSRevenue - less expenses AKA: (excess of revenues over
expenses)
What are tangible assets? - ANSWERSLand,equipment, buildings,leaseholds, furniture, etc...
What are intangible assets? - ANSWERSGoodwill, patents, registered/trademarked names, phone
numbers, intellectual property, websites
What are the GAAPs? - ANSWERSGoing concern
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